CGFM TEST 3 2026 Exam
Questions and Correct
Answers | New Update
Three Broad Government Spending Purposes - ANSWER ✔✔1)
Current Operations
2) Capital Outlays
3) Debt Service
Present Value Analysis - Three Components - ANSWER
✔✔Determines what $$ Rec'd in Future is Worth Today
1) inflation component - year over year loss in value
,2) enterprise component - inherent risk
3) unique component -
Budget Accounting and Procedures Act of 1950 - ANSWER
✔✔Requires the head of each federal agency to establish and maintain
I/C's.
Federal Managers Financial Integrity Act of 1982 (FMFIA) - ANSWER
✔✔requires the head of each agency to evaluate controls on an annual
basis, reporting any weakness along with a corrective action plan
** (resulted in the "green book") **
Single Audit Act of 1984 (amended in 1996) - ANSWER ✔✔requires
the audit of state and local governments and npo's receiving federal
funding
Sarbanes Oxley Act of 2002 - ANSWER ✔✔Placed restrictions on
publicly traded companies following Enron scandal. Requires mgmt to
report on I/C's for financial reporting in its annual report.
(ICOFR) - ANSWER ✔✔Internal Controls Over Financial Reporting
,Chief Financial Officers Act of 1990 (CFO Act): - ANSWER
✔✔required 10 federal agencies to produce audited annual financial
reports that included a report on internal control.
expanded in 1994 by GMRA
INTERNAL CONTROLS - ANSWER ✔✔systems and techniques
managers use to provide reasonable assurance that agency objectives
met in an effective/efficient manner, in compliance with laws/regulations,
and to safeguard assets.
Implemented to accomplish certain results, prevent problems, or detect
problems that have occurred.
Some controls can both detect and prevent problems (but only if their
existence is known).
TIME VALUE OF MONEY - ANSWER ✔✔Used in consideration of
capital budgeting
1) Present Value Analysis
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, 2) Future Value Analysis
3) Payback Analysis
Flowcharting - ANSWER ✔✔Iterative process requiring changes
throughout development, each step represents a decision, also used to
evaluate processes for effective internal controls
Earned Value Management (EVM) - ANSWER ✔✔project mgmt
system that weighs both schedule and cost performance to determine if
a project is delivering expected results on time and within budget
Regression Analysis - ANSWER ✔✔Predicts the relationship
between variables:
1) Direct Linear Regression
2) Indirect Linerar Regression
3) Non-linear Regression
4) No Relationship
** See Limits of Regression Analysis
Questions and Correct
Answers | New Update
Three Broad Government Spending Purposes - ANSWER ✔✔1)
Current Operations
2) Capital Outlays
3) Debt Service
Present Value Analysis - Three Components - ANSWER
✔✔Determines what $$ Rec'd in Future is Worth Today
1) inflation component - year over year loss in value
,2) enterprise component - inherent risk
3) unique component -
Budget Accounting and Procedures Act of 1950 - ANSWER
✔✔Requires the head of each federal agency to establish and maintain
I/C's.
Federal Managers Financial Integrity Act of 1982 (FMFIA) - ANSWER
✔✔requires the head of each agency to evaluate controls on an annual
basis, reporting any weakness along with a corrective action plan
** (resulted in the "green book") **
Single Audit Act of 1984 (amended in 1996) - ANSWER ✔✔requires
the audit of state and local governments and npo's receiving federal
funding
Sarbanes Oxley Act of 2002 - ANSWER ✔✔Placed restrictions on
publicly traded companies following Enron scandal. Requires mgmt to
report on I/C's for financial reporting in its annual report.
(ICOFR) - ANSWER ✔✔Internal Controls Over Financial Reporting
,Chief Financial Officers Act of 1990 (CFO Act): - ANSWER
✔✔required 10 federal agencies to produce audited annual financial
reports that included a report on internal control.
expanded in 1994 by GMRA
INTERNAL CONTROLS - ANSWER ✔✔systems and techniques
managers use to provide reasonable assurance that agency objectives
met in an effective/efficient manner, in compliance with laws/regulations,
and to safeguard assets.
Implemented to accomplish certain results, prevent problems, or detect
problems that have occurred.
Some controls can both detect and prevent problems (but only if their
existence is known).
TIME VALUE OF MONEY - ANSWER ✔✔Used in consideration of
capital budgeting
1) Present Value Analysis
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, 2) Future Value Analysis
3) Payback Analysis
Flowcharting - ANSWER ✔✔Iterative process requiring changes
throughout development, each step represents a decision, also used to
evaluate processes for effective internal controls
Earned Value Management (EVM) - ANSWER ✔✔project mgmt
system that weighs both schedule and cost performance to determine if
a project is delivering expected results on time and within budget
Regression Analysis - ANSWER ✔✔Predicts the relationship
between variables:
1) Direct Linear Regression
2) Indirect Linerar Regression
3) Non-linear Regression
4) No Relationship
** See Limits of Regression Analysis
